Kellogg in the News

Forbes

Reality Check On Starting Pay – 05/11/17
Article by Adjunct Professor Harold Sirkin discusses The Class of 2017 Job Outlook Report published recently by iCIMS Inc., a talent recruitment software company. Sirkin explores why many graduating seniors’ salary expectations are unrealistically high.

Marketplace

With sales falling, Whole Foods replaces nearly half its board members – 05/11/17
Article discusses Whole Foods’ decision to appoint a new chairwoman and replace five of its board members amid falling sales and pressure from key investors to turn the company around. According to Professor Nicholas Pearce, board members generally do big-picture, strategic thinking, “so this could be repositioning the brand. It could be re-envisioning how Whole Foods thinks of itself.”

Fortune

What the Downfall of Michael Flynn Teaches Business Leaders About Hiring Bad Apples – 05/10/17
Article by Professor Harry Kraemer explores the Trump-Flynn drama and the management lessons it teaches to business leaders. Some of these lessons include 1) ignoring red flags about the suitability of a candidate almost always leads to bad hiring decisions, 2) without self-reflection, leaders can easily delude themselves and undermine the effectiveness of their decisions, and 3) leaders need a balanced perspective by listening to a variety of opinions, particularly those that take the opposite position.

Business Insider

Research shows that sitting next to the wrong person at work could get you fired – 05/09/17
Article originally published on Kellogg Insight examines new research from Professor Dylan Minor, which found that workers in a 25-foot radius around high performers at a large technology firm boosted performance in coworkers by 15%, translating into an estimated $1 million in additional annual profits. This spillover effect also implies that “bad eggs” can negatively impact their neighbors, but this effect disappears almost immediately once that worker is either fired or physically relocated.

Forbes

Hackers, Empathy and Neuroscience: A Conversation With Moran Cerf – 05/09/17
Article by Professor Robert Wolcott features an interview with neuroscientist and Professor Moran Cerf, in which the two discuss what makes for successful hackers and scientists, as well as the future of neuroscience. “Hacking at the heart of it is understanding people…Artists, hackers, good investors, they all share something which is being particularly good at tapping into someone else’s brain,” said Cerf.

Forbes

International Costs To Trump’s Distinctive Diplomacy – 05/09/17
Article by Adjunct Professor Phil Levy explains the negative repercussions of President Trump’s new approach to international relations, including the election of Moon Jae-in as the next president of South Korea, as well as Trump’s almost-signing of an executive order to withdraw from NAFTA.

Chicago Tonight

Flight Overbooked? Use Game Theory to Get the Biggest Payout – 05/08/17
Article quotes Associate Professor James Schummer, who explains how game theory, a mathematical study of strategic interaction, can help a passenger can get the biggest bang for their buck when a flight is overbooked. “If the airline only needs one seat, there’s only one way to run the auction,” Schummer said. “They keep raising it until someone jumps in.”

NPR

Have The ‘Miserable’ Airlines Finally Reached A Tipping Point? – 05/08/17
Article examines the current state of the airline industry, discussing how commercial airlines are struggling to rebuild consumer trust. “As a result of airline activities and decision making over really the past maybe even 10 years, customers have slowly but surely started to feel as if airlines don’t always have their back,” said Professor Kent Grayson.

Poets & Quants

Best & Brightest MBAs: Class of 2017 – 05/07/17
Article highlights the work and accomplishments of some of the best and brightest MBA graduates of 2017, determined by Poets & Quants. Kellogg students Jared Scharen and Adam Maddock were both recognized in the list.

The New York Times

Health Act Repeal Could Threaten U.S. Job Engine – 05/06/17
Article emphasizes that the health care industry has created jobs at more than three times the rate of the rest of the economy since 2007, and that the Affordable Care Act repeal may hurt local economies. “If there is a group that loses out the most, it’s near-seniors. Their health care is so expensive, but the tax credit in the House bill caps out at $4,000,” said Professor Craig Garthwaite. The article was also picked up by CNBC.

Chicago Tribune

Advocate Health Care to make $200 million in cuts – 05/05/17
Article discusses how Advocate Health Care, Illinois’ largest hospital system, is making $200 million in cuts in response to financial pressures such as reimbursement rates from federal and state insurance programs that don’t cover the cost of caring for patients. “I think some of them [hospitals] are just hitting a pause for a second to figure out what the world’s going to look like in a year,” said Professor Craig Garthwaite.

Forbes

Investing In India’s Low-Fee Schools – 05/05/17
Article discusses how Kellogg student Ashwin Halgeri’s upbringing helped his team, EduIndia Fund, create the winning proposal of the 2017 Kellogg-Morgan Stanley Sustainable Investing Challenge. Halgeri and partners Erica Hoeveler and Chris Shaw developed an investment vehicle to expand access to high-quality, low-fee private schools in India, aiming to help more children from low-income families attend school and remain in class, rather than drop out for financial reasons.

Forbes

What Top Leaders And Academics Are Thinking About Leadership In 2017 – 05/05/17
Article discusses seven leadership tips from top executives, academics, consultants, and diplomats. The fifth tip is to “learn about trends and build skills.” In the author’s explanation of this tip, she mentions Professor Loran Nordgren’s research findings that warmth improves leadership success.

The New York Times

Right and Left React to Trump’s Comments on the Civil War – 05/05/17
Article features political writing from both the right and left sides that discuss Trump’s recent controversial claims about the Civil War. Professor Brian Uzzi’s research regarding political echo chambers is highlighted as a piece of writing “from the center.”

BBC News

Can a life-swap exercise stop a community tearing itself in two? – 05/04/17
In certain iterations it can have an obvious, immediate positive impact on participants, but there are some drawbacks according to Nour Kteily, a professor who has studied "perspective taking" in negotiations between Palestinians and Israelis at Northwestern University's Kellogg School of Management. "There is a lot of work in social psychology that suggests that intergroup contact can be helpful," he says. "[However,] it can have the flavour of a feel-good exercise that doesn't change a lot on the ground. There's research that shows that can be frustrating on the low-power group.”

Bloomberg

Inside the ‘Scorpion Room’ Where Drug Price Secrets Are Guarded – 05/04/17
Article discusses how pharmacy-benefit managers (PBM’s) often put auditors in secure rooms, limit the number of contracts they can see, and restrict and review note taking. Professor Craig Garthwaite mentions that any restriction on audits “gives an advantage to the PBM,” and that “PBMs have no reason to want to shine a light on it.”

Marketplace Radio

How do you pay for pre-existing conditions? The GOP plans to charge more – 05/04/17
Article discusses how, in the new GOP health care bill, Republicans plan to have insurance companies charge people more if they have a pre-existing condition. “So imagine we’re making a model airplane. They want to make one with one wing and one landing gear, but not think about ‘What does it take to make this health insurance airplane get off the ground?'” said Professor Craig Garthwaite.

Poets & Quants

2017 Best MBAs: Jared Scharen, Northwestern (Kellogg) – 05/04/17
Article features an interview with Jared Scharen, a Kellogg student who made Poets & Quants’ “2017 Best MBAs” list. Scharen discusses his professional experience and the entrepreneurship resources he received while at Kellogg. After graduation, Scharen will be working at eRetirements.com, a startup he founded to help Baby Boomers identify their ideal retirement locations. The full list of Best MBAs will be published on Monday.

Talent Economy

Is the Notion of Two Weeks’ Notice Obsolete? One Company Has An Alternative – 05/04/17
In the end, employee turnover is inevitable at any company, and having open conversations can be beneficial, said Victoria Medvec, professor of management and organizations at the Kellogg School of Management at Northwestern University. “Knowing early and creating a willingness for employees to tell you early about their interest in going elsewhere is very helpful,” she said. This allows for advanced notice for the employer to start a succession planning process.

WBEZ

How The Latest Obamacare Repeal Bill Could Affect Illinois – 05/04/17
At least one local expert describes the old Illinois program for Obamacare as “a disaster.” “It was under-funded, the premiums were really high, and then there was also a waiting period to get it,” said Joel Shalowitz, a clinical professor of Health Industry Management at the Kellogg School of Management at Northwestern University. “So the people who needed it found it hard to get, and then it was un-affordable.”